The 10-second takeaway
For the quarter ended March 31 (Q1), Nektar Therapeutics whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP loss per share expanded.
Gross margins contracted, operating margins grew, net margins dropped.
Nektar Therapeutics notched revenue of $23.0 million. The seven analysts polled by S&P Capital IQ expected a top line of $27.5 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $17.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.48. The seven earnings estimates compiled by S&P Capital IQ averaged -$0.43 per share. GAAP EPS were -$0.48 for Q1 versus -$0.36 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.3%, 220 basis points worse than the prior-year quarter. Operating margin was -197.4%, 460 basis points better than the prior-year quarter. Net margin was -239.4%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $26.6 million. On the bottom line, the average EPS estimate is -$0.45.
Next year's average estimate for revenue is $201.2 million. The average EPS estimate is -$1.08.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 195 members out of 223 rating the stock outperform, and 28 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Nektar Therapeutics a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nektar Therapeutics is outperform, with an average price target of $12.25.
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